which assumes a risk of bankruptcy and its associated costs; under these circumstances, the firm faces an increasing cost of … capital as a function of its debt/equity ratio. Domestic and foreign investment will be interdependent, since, in competing … for finance, each affects the cost of capital in the other location. Production interactions can arise when, because of …

saving-to-output ratio, suggesting international capital mobility. Design/methodology/approach – The paper uses the … low international capital mobility. Originality/value – Although the findings are in contrast to those of Feldstein and … between saving and investment if there are no barriers to capital movements. …

Purpose – This article proposes an evaluation of capital investments that accounts for not only the initial assets, but … technique is demonstrated for analyzing capital investment opportunities containing expansion options in a finite time horizon …

The rate of capital formation by businesses has long been among the most closely watched elements of the national … accounts. During the last decade, this component of investment attracted considerable interest as capital spending helped … that recent shifts in the composition of the stock of capital goods and in the relative prices of capital goods have …

The 1998 Annual Capital Expenditure Survey (ACES) provides information on disaggregate investment across a wide range …

with an eye to rehabilitating convex costs of adjusting the capital stock. In recent firm-level work, the response of …, implying annual capital-stock adjustment speeds on the order of 15 to 35 percent. In aggregate data, I find that this … "fundamentalist" model can account for the reduced-form effect of output on investment and the estimated capital-stock adjustment …